8 - Linkages in Urban and Energy Policies: An Analysis of China and India

Summary

Introduction

China and India are two countries which have been naturally compared and contrasted by academics and policy-makers, especially in the past decade, in terms of development patterns and market opportunities, among others. Often the roles played by these two countries are analysed through the concept of competition, mostly due to historical baggage, the population factor, and the ever increasing growth rates. The rise in economic growth has led to a proportional increase in demand for more energy supplies and alternatives, fuelling competition at the international stage. Many countries today are faced with the challenges of energy shortages and management of sparsely available resources. These resources, especially petroleum, oil, and natural gas, are distributed unevenly across nations, and thus, their supply and prices can be controlled by the fortunate few, a large proportion of which are located in the Middle East. Countries such as China and India, which have implemented economic reforms, are faced with the multifaceted challenges of sustaining high economic growth rates, the demand for which has to be fuelled by a constant supply of energy, and also of ensuring a decent supply of vital energy for the burgeoning population. In order to meet the two aforementioned demands, the two nations have engaged in many conflict-cooperation scenarios, mainly to procure unevenly endowed energy sources. The most important issue to be addressed here will be: Why will the issue of competition not go away? This can be illustrated with the help of Figure 8.1. The figure clearly illustrates the fact that it is domestic priorities and policies that drive geopolitics.

In terms of energy use, it is well-known fact that, as the two fastest growing economies in the world, China and India are expected to consume a substantial share of the world's energy resources in the coming decades. The study of competition between China and India will be analysed in light of this background. The patterns of energy consumptions in these sectors will have important ramifications on global energy usage.